London Office Space to See Flurry of Big Business Moves?
Global money manager Schroders have shortlisted the office space of Great Portland Estates and the 100 Bishopsgate scheme as prospective new bases for its London Operations, fanning the flames of competition as big business begins to battle for LondonΓÇÖs newest office space developments.
With their existing office space lease coming to an end in 2015, Schroders – who manage ┬ú164.0 billion on behalf of institutional and retail investors, financial institutions and high net worth clients around the world – have shortlisted these two schemes as part of only a ΓÇ£handfulΓÇ¥ that appeal as potential successors having scoured the London office market with the help of Knight Frank for sites offering 250,000 sq. ft. of office space to replace it.
According to a report in The Telegraph, the Schroders lease is one of a number due to expire or come under review through break-clauses in the next few years. With the option to relocate to one of LondonΓÇÖs newest office space developments, this move could be seen as the opening volley in the fight for prime office space within Central LondonΓÇô with insurance broker Aon and merchant bank Close Brothers identified as businesses known to be already seeking to upgrade to new office space.
Running parallel to this activity in the commercial office market, the demand for serviced office space within the capital has also increased since the beginning of 2010, with officebroker.com, the UKΓÇÖs leading broker of serviced office space, reporting a 46% rise in enquiries and a 55% increase in the number of individual businesses placed within serviced office space in its Serviced Office Review: Central London Q2 2010 report.
In the commercial market however, the competition for office space in these premium offices of the future could be made all the more intense with the shortage of new developments expected in Central London in the next few years, despite previously mothballed projects like the ΓÇ£CheesegraterΓÇ¥ and ΓÇ£Walkie TalkieΓÇ¥ seemingly about to be revived.